MGEB06H3 Lecture Notes - Lecture 2: Structural Unemployment, National Research Universal Reactor, Frictional Unemployment

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22 Feb 2017
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Macroeconomics Notes: Lecture Two (Chapter Eight) PART 1:
Employed:
o those who get a paid job (either full time or part time).
o Is the total number of people aged 15 and older who are currently employed
Unemployed (U):
o those who are currently available for work; but do not have a job; and have been
actively looking for a job during the past four weeks. And are above the age of 15
Not in the labour force (NILF):
o those who do not have a job and are not looking for one.
o Is equal to the sum of the total number of employed people (employment) ad the total
number of unemployed
Labour force (LF) = # of employed + # of unemployed.
The labour-force participation rate (LFPR) = the percentage of adult population that is in the
labour force: (labour force/adult population) x100%
Unemployment Rate = the percentage of the labour force that is unemployed:
(# of unemployed/labour force) x 100%
Employment Rate = the percentage of adult population that is employed: (# of employed/
adult population) x 100%
o Note: Employment rate is NOT equal to 1 the unemployment rate.
Significance of the Unemployment Rate:
o This rate gives a general picture on what happened in the labour market. Example how
easy or difficult it is to find a job in that current state.
o The employment rate various between age groups and regions
Teenagers have a high rate
The Atlantic region has a higher rate too due to its economics structure.
o The unemployment rate does not always give the true picture of what is going on in the
labour market. Since it takes time for workers to even for experienced workers to find a
job. The ones who claim to be unemployed may not be those who want to work buy
could not find one
Discouraged workers:
o individuals who would like to work but have given up looking for a job due to
unsuccessful job search.
o The are non working people who are capable of working but have given up looking for a
job since the believe that there is not jobs available
Marginally attached workers:
o individuals who are not currently working and have stopped seeking employment.
However, they have stopped looking because they are waiting for employment to begin.
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